Economic Importance of Natural Resources Quiz
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Questions and Answers

What is the economic significance of labor?

  • Labor is an input for the production process (correct)
  • Labor is a fixed supply resource
  • Labor has an uneven distribution among countries
  • Labor can be easily restored to satisfy needs and wants

    • How does the quality of labor vary among individuals with identical training?

  • Quality of labor decreases with identical training
  • Quality of labor is not affected by job satisfaction
  • Quality of labor varies, hence necessitating labor specialization (correct)
  • Quality of labor remains constant among all individuals

    • What determines the price of a resource according to the text?

  • Scarcity and demand for the resource (correct)
  • The country of origin
  • The ability to increase supply suddenly
  • The physical state of the resource

    • Why is international trade important in relation to resource distribution?

    <p>To address the uneven distribution of resources among countries</p> Signup and view all the answers

    What is a characteristic that distinguishes skilled labor from unskilled labor?

    <p>Skilled labor can be separated from the worker</p> Signup and view all the answers

    How does economic rent impact commercial activities?

    <p>It results in higher rents for more lucrative opportunities</p> Signup and view all the answers

    Which economic indicator can be used to calculate the Gross National Income?

    <p>Final Consumption Expenditure (C)</p> Signup and view all the answers

    What drives economic growth?

    <p>Driving forces for profit</p> Signup and view all the answers

    What is a key characteristic of a Market Economy?

    <p>Decentralized decision-making by individuals</p> Signup and view all the answers

    What is a disadvantage mentioned in the text related to choice in the economy?

    <p>Goods and services are in abundance but unaffordable</p> Signup and view all the answers

    In a Market Economy, what motivates consumers and producers?

    <p>Maximizing profits for producers</p> Signup and view all the answers

    What ensures Pareto efficiency in a Market Economy?

    <p>Demand and supply dynamics</p> Signup and view all the answers

    In a centrally planned economy, what is the ownership structure according to the text?

    <p>All factors of production owned by the government</p> Signup and view all the answers

    Which factor is NOT a characteristic of a Market Economy?

    <p>Centralized decision making</p> Signup and view all the answers

    What is a characteristic of motivation in a centrally planned economy?

    <p>Selflessness and working for the common good</p> Signup and view all the answers

    What is a challenge related to risk in economics?

    <p>Only a small percentage of the population can afford insurance against risk</p> Signup and view all the answers

    What motivates innovation in a Market Economy?

    <p>Profit motive</p> Signup and view all the answers

    What factor distorts choice according to the text?

    <p>Availability of persuasive advertising</p> Signup and view all the answers

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